Study: Wholesale supplierlacks treatment capacity; Coffey County advised to plan costly upgrades

Coffey County commissioners heard a summary from a consultant that Wholesale District 12s current treatment and storage capacity cannot meet contracted maximum volumes and would need major capital upgrades to serve anticipated growth.

The finding matters because the countys water districts and potential industrial sites, including the countys industrial parcel near the airport (referred to in the study as Vito Junction), rely on Wholesale 12 for supply. The consultant said limited treatment capacity, aging trunk mains and insufficient storage could limit the countys ability to attract large industrial users.

The consultant, presenting the draft study, said Wholesale 12 currently operates a conventional treatment plant with a nominal 1,200,000 gallons-per-day capacity and that the plant ran continuously for 13 days in 2023 under heavy demand. The study recommends constructing new treatment capacity starting with a 3,000,000-gallons-per-day treatment train, followed by a second train to replace the aging plant. It also recommends redundant supply mains (estimated $22 million to $28 million) and additional storageincluding a proposed 1,500,000-gallon clear well and a 1,000,000-gallon elevated tower near the industrial site.

"The existing and future membersmaximum contract volumes cannot be met with current facilities," the consultant said. The study said distribution trunk mains installed in the 1990s have experienced repeated breaks, and Wholesale 12s current storage and trunk capacity would not reliably deliver contractual maximum volumes to all members.

The study included preliminary financial modeling: wholesale rates were modeled at about $5 per 1,000 gallons rising to $5.50 in 2025, and operation and maintenance costs at about $4.50 per 1,000 gallons absent expanded production. The consultant noted economies of scale could reduce per-unit O&M to roughly $3.45 per 1,000 gallons if production expands. Capital cost estimates in the draft include a $114 million total for multiple recommended improvements (new treatment trains and replacement/expansion of distribution and storage assets); individual line items included roughly $22M$28M for redundant mains and $25M to replace the existing plant in one scenario.

Commissioners and district representatives discussed next steps: the consultant said two wholesale and rural districts should re-engage joint capital planning to time local projects with Wholesale 12 upgrades. County leaders asked for additional data and said staff would return when more district-level data (including the City of Burlington system) is incorporated into the final report.

The consultant said additional reporting that integrates recent submissions from Coffey 3 and Anderson Water District would be provided in the coming weeks.

What happens next: the consultant said it is possible Wholesale 12 will seek phased expansion and that county and district leaders should plan joint financing and staging. Commissioners did not take formal action on the study at the meeting; staff said they would return with updated analysis and recommendations once outstanding data are merged into the draft report.

Ending: County officials flagged fire-flow and hydrant availability as a related local concern and asked the consultant to make future drafts explicit about fire-protection implications and staging so commissioners and districts can evaluate funding, timing and impacts on ratepayers.